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Legislation introduced by Rep. Jennifer Wexton, D-10th, to safeguard Americans’ retirement savings in the midst of the financial crisis brought on by the coronavirus was incorporated into the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed by President Trump on Friday.

The $2 trillion CARES Act, approved by the Senate on Wednesday and the House on Friday, includes a provision to suspend for the current year the required minimum distribution (RMD) for defined contribution retirement plans, including 401(k)s, thrift savings plans (TSPs), and Individual Retirement Accounts (IRAs). Before the CARES Act was passed, individuals with these plans were required to begin withdrawing a percentage of their tax-deferred retirement plan when they turn 72 or face a penalty of 50% of the amount that should have been distributed.

“The economic fallout of this pandemic has taken a devastating toll on the retirement savings of millions across America,” said Wexton in a news release. “The provisions that I fought for will suspend the required minimum distribution, allowing retirees to leave their money in tax-deferred accounts without facing a penalty and give time for the markets to recover. This will help protect the financial security of every American household that has planned their future around hard-earned retirement savings.”

Wexton notes in the release that as the financial markets face a historic downturn due to COVID-19, tax-deferred retirement plans have faced a significant drop in value, meaning that individuals who are made to withdraw funds at this time will take serious losses on their investment.

“No one whose retirement savings has lost value due to the pandemic should be forced to withdraw funds and take losses on their investments while the market is down,” Wexton said in a statement to The Star. “This is just a small piece of our overall relief program, but it’s a common-sense, bipartisan step my colleagues can take to protect the retirement savings of all Americans. I’m working hard to get help to my constituents as fast as possible and in every way possible.”

Wexton’s retirement legislation will become effective immediately and remain in effect until the end of 2020.